- The US data could be decisive during the week.
- Making a new lower low activates more declines.
- The price action showed overbought signs.
The EUR/USD price ranges in the short term as the US dollar moves sideways. The pair is trading at 1.1233 at the time of writing, far above today’s low of 1.1196.
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The price maintains a bullish bias despite temporary retreats after the US reported poor economic figures in the last trading session.
Retail Sales, Core Retail Sales, Industrial Production, and Capacity Utilization Rate were worse than expected. Still, the current pair retreated slightly in the short term as the price seems overbought.
Today, the Eurozone Final CPI is expected to report a 5.5% growth, while the Final Core CPI may register a 5.4% growth. Furthermore, the US Housing Starts could drop from 1.63M to 1.48M, while Building Permits are expected to remain at 1.49 M.
The US will release the Unemployment Claims, Philly Fed Manufacturing Index, Existing Home Sales, and CB Leading Index tomorrow.
On the other hand, the Eurozone Current Account, Consumer Confidence, and German PPI should bring action as well. The positive US data could help the greenback to dominate the currency market in the short term.
EUR/USD Price Technical Analysis: Support at 1.1200
As you can see on the hourly chart, the price failed to approach the warning line (wl1) again, signaling buyers are exhausted.
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Now, it has dropped below the upper median line (uml) and reached the critical support of 1.1204. It has registered only a false breakdown below this static support and has rebounded.
The pair challenges the upper median line (uml), which becomes a dynamic resistance. I believe only a valid breakdown below 1.1204, a new lower low, activates a larger drop. The median line (ml) and the weekly pivot point of 1.1140 represent potential targets.
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